Allahabad Bank is planning to roll out its gold loan scheme -- loan against gold jewellery as collateral -- nationally. At present, the scheme is operational in four southern states namely, Andhra Pradesh, Kerala, Karnataka and Tamil Nadu; and, in Kolkata. The scheme is expected to be rolled out in Nagpur by the end of this month.
The gold loan scheme was rolled out in Kolkata on July 1, across 25 branches in the city and sub-urban areas. Currently, gold loan accounts for approximately Rs 200 crore of its retail loan portfolio that stands at around Rs. 19,000 crore.
Allahabad Bank would sanction a maximum of Rs 5 lakh as loan against gold jewellery with an annual interest of 12.5 per cent.
